Turkey wants India to start FTA talks soon.

Turkey wants India to start talks on a proposed Free Trade Agreement (FTA) soon and said the ongoing political turmoil will not impact foreign investment flows.

Though there is an India-Turkey Joint Study Group report on “the feasibility and possibility of concluding a Comprehensive Economic Partnership Agreement” (CEPA, or in other words an FTA), there have been no dates yet for starting the FTA negotiations.

In an interview to The Hindu, Turkey's Development Minister, Lütfi Elvan said: “We (Turkey) are ready to start FTA negotiations. But we are waiting for the Indian side to move ahead. We are expecting an official Indian delegation to come to Turkey soon in this regard.”

He said Turkish companies want to make India a gateway for improving business ties in South Asia. Indian companies can use Turkey as a hub to expand operations in the European Union (with which Turkey has a Customs Union), the Middle East and Africa.
Shrinking trade

In FY’16, India-Turkey trade had shrunk nearly 28 per cent year-on-year to $4.91 billion, of which India’s exports to Turkey were $4.14 billion (contraction of 22.7 per cent), while Turkey’s exports to India fell 47 per cent to $776 million.

Asked if Turkey is planning special measures to protect investors against any losses due to the political unrest, Mr. Elvan said: “Investors have been coming even after the (failed) July coup attempt. The month following the coup, there was $1 billion worth of capital flows into Turkey. So, there is no risk at all for investments in Turkey.”

“Turkey is a safe haven for investors and has a stable environment for (foreign) trade. Turkey has many French, British and German companies, and more Europeans are coming in to do business. So we don’t feel there is any need for it (political risk cover or other special investment protection measures).”
‘Tailor-made incentives’

However, he said while there is a standardised general incentive policy for investors, Turkey now has ‘tailor-made’ incentives for investments that help Turkey meet its economic development plans including reducing foreign dependency and bringing technological advancement.

Such incentives will include up to 100 per cent discount in corporate tax, allocation of public property for up to 49 years without rent obligations and free ownership transfer of such property on meeting certain conditions, social security payment exemption for ten years and the government helping out by taking a 49 per cent stake in investment company on the condition that such holding will be offered to public in ten years.

Stating that Turkey is a world leader in Public Private Partnership (PPP) projects, Elvan said Turkey has around 211 PPP projects worth $122 billion including $66.8 billion in airport sector and $25 billion in the energy industry. “We have well-experienced companies doing PPP projects. If India invites, Turkish companies can share their experience in PPPs. The Turkish government can work on that with the Indian government,” the Minister said.

Source : thehindu.com